Comtech Secures $100M Investment From White Hat, Magnetar

Comtech Telecommunications Corp CMTL announced a $100.0 million investment by current shareholder White Hat Capital Partners LP and Magnetar Capital.
White Hat and Magnetar will initially purchase $100.0 million of convertible preferred stock, convertible into shares at $24.50 per share, subject to potential adjustment to $26.00 per share based on Comtech's FY22 financial performance.
The preferred stock carries a 6.5% dividend, payable in kind or cash at Comtech's election.
Until March 31, 2023, White Hat and Magnetar will have a one-time right to purchase up to an additional $25.0 million of convertible preferred stock, which will be convertible into shares at a conversion price of $32.00 per share.
Comtech will utilize the investment proceeds across a range of initiatives to accelerate growth and increase profitability.
White Hat and Magnetar agreed to appoint Mark Quinlan to Comtech's board.
Price Action: CMTL shares traded lower by 3.63% at $23.39 on the last check Monday.